Exploring Payment Choices: Are UAE Shoppers Leaning Towards Digital or Physical Cards?

The expansive 2024 Global Survey by IDEMIA Secure Transactions (IST) has brought to light the evolving preferences and behaviors of consumers in the realm of financial technologies.

With responses from over 3,100 participants across 12 nations, including UAE residents, the study delves into ages ranging from 18 to 71 years, offering a comprehensive view of the demographic landscape. IST's initiative aims to enhance the global financial sector's accessibility, security, and convenience by understanding the diverse needs and preferences of its users.

This survey, spearheaded by IST, a pioneer in payment and connectivity solutions, uncovers a significant inclination towards design, ease of use, and sustainability as the leading factors influencing consumer payment trends. While security continues to be a pivotal concern, the spotlight also falls on the burgeoning demand for biometric and metal cards, a pivot toward digital delivery preferences, and a heightened consumer emphasis on security measures.

Over recent years, the payments landscape has undergone a transformative shift, with banks and FinTech companies introducing a plethora of banking options. This digital evolution in banking services has underscored the importance of the physical card's design as a vital element for maintaining customer loyalty.

Consumer Preferences and Technological Adoption

The survey's findings reveal a strong preference among UAE respondents for receiving their payment cards instantly at the bank, coupled with the ability to access these cards on their mobile phones—a preference shared by 77% of participants. Moreover, when it comes to digital card access, a majority favor using the banking app on an Android device, followed by Google Pay, Apple Pay, and Samsung Pay.

Despite the surge in digital banking solutions, a significant portion of consumers still value physical cards, primarily for ATM transactions, indicating a balanced integration of digital and traditional banking methods.

The study also points out a notable interest in metal cards, especially for their premium design, which is highly favored by the younger demographic, aged 18 to 37. Additionally, unique features like LED-embedded cards, which light up during transactions, and biometric cards, which offer enhanced security, are gaining traction among consumers.

Security Concerns and Digital Adoption

Security emerges as a paramount concern with 83% of respondents opting for biometrically enabled digital payment cards. These features are lauded for marrying convenience with robust security protocols. However, challenges in technology adoption persist, with a considerable percentage of non-digital card users expressing a lack of understanding and distrust in the security of digital cards.

Yet, the interest in simplifying online transactions through one-click payment solutions is overwhelmingly high, reflecting a consumer trend towards streamlined and secure online payments.

Julia SCHOONENBERG, Executive Vice President Payment Services at IDEMIA Secure Transactions, emphasizes the company's ambition, stating, "As a trendsetter, we strive to be at the forefront of the evolutions in our industry and this survey testifies this ambition. Consumers have high expectations for their payment solutions and the way they use and manage their payment means. It is IST's role to meet and exceed them, by offering ever more innovative solutions."